Market Trends of North America Heavy Commercial Vehicle (HCV) TMPS Industry
This section covers the major market trends shaping the North America HCV TPMS Market according to our research experts:
Rising sales of Commercial Vehicles in North America to drive the market
Heavy commercial vehicle sales are rising due to various reasons like the rising E-commerce industry, the increased logistics, and warehousing industry, and trucking, the most dominant form of overland freight transportation in North America. For instance, in 2021, Class 8 commercial truck sales reached 221,889 units, up by 15.62% over 2020.
Among all the accidents occurring on the road, nearly 40% can be attributed to under-inflated tires. Research by the National Highway Traffic Safety Administration in the US determined that vehicles with underinflated tires by more than 25% are more likely to be involved in an accident compared to a car with adequately inflated tires.
In addition, tires that are up to 25% underinflated are also prone to overheating, due to which the handling gets affected, eventually leading to tire failure. This scenario is frequently observed in heavy commercial vehicles. According to the statistics based on the tire pressure monitoring inflatable restraint systems, nearly 70% of national highway accidents in the US are due to tire blowouts. The possibility of mortality is almost 100% if the vehicle is speeding at over 70 mph.
However, from mid-2015, the end users of commercial vehicles gradually started installing TPMS through the aftermarket channel. According to the consumer survey, about 40% of North America's new commercial fleet sales were equipped with TPMS systems in 2021. In addition to passenger safety, there are additional benefits of TPMS, such as prolonged tire span, enhanced fuel efficiency, and reduction in the emission of greenhouse gases, among others. According to the Department of Energy report, there could be a drop in mileage, by 0.3%, for every one psi pressure drop in the tires. 3.56 million gallons of gasoline are wasted every day due to under-inflated tires.
Thus, the increasing consideration for safety among end users over the past few years led them toward adopting various technologies, of which TPMS is one of the most important, as it helps increase tire and fuel efficiency. Thus, with more vehicles going out on the roads, the market studied is projected to register healthy growth.
Another factor driving the market for TPMS systems for heavy commercial vehicles in North America is the rapid rise in the sales of electric trucks due to the adoption of stringent vehicle emission norms. For instance, in 2021, 122 heavy-duty or Class 8 electric trucks were delivered in the United States, a growth of 40.16% from 2020.
Such factors will likely contribute to the market's growth during the forecast period.
United States Dominated the Market
The US is anticipated to dominate the North America Heavy Commercial Vehicle (HCV) TPMS market in the North American region. According to some research studies, the US trucking industry contributes to about 85% of the entire trucking industry in North America.
The demand for HCV TPMS is expected to increase during the forecast period. Enactment of greenhouse gas emissions regulations on commercial vehicles by the US Environmental Protection Agency (US EPA) and the National Highway Traffic Safety Administration (NHTSA) is prompting fleet operators to integrate TPMS to improve efficiency and reduce carbon footprint.
According to the Freight Council of North America, about one out of five tucks/tractors operates with one or more tires underinflated by at least 20 psi which increases the risk of unexpected vehicle breakdown and damage and a delay in freight delivery. Maintaining proper tire inflation levels contributes to improved fuel efficiency, reduced tire wear, and long casing life. To increase fleet productivity, fleet operators are integrating TPMS.
The US CV market is witnessing a high growth rate, prompting commercial vehicle manufacturers to integrate driver-assistant features like automatic tire inflation systems, dual tire pressure equalizers, etc., in heavy-segment vehicles. It makes the driving and operating mechanism swift, safe, and efficient.
According to the US Department of Transportation, under-inflated tires release over 26 billion kg (57.6 billion lbs) of unnecessary carbon-monoxide pollutants into the atmosphere annually in the country alone. Moreover, the government is working with the transportation industry under an EPA SmartWay Transport program to voluntarily seek solutions to reduce emissions and improve freight transport fuel efficiency. The program expressly recognized the importance of proper tire inflation to reduce air pollution, propelling more and more fleet operators to integrate TPMS, and propelling the market growth during the forecast period.
In 2020, the aftermarket channel of TPMS had almost tripled in North American Market due to the deployment of pressure sensors in Cars and LCVs. Compared to the European Market, the North American region is mature enough to utilize TPMS in cars. A similar trend is anticipated in Heavy Commercial Vehicles with factory-fitted TPM systems over the coming 5-8 years.
Thus the factors mentioned above are further projected to maintain the status of the US as the largest market for heavy commercial vehicle TPMS systems in North America.
